Were You Born To Be A Trader?
2020-05-05 | Simpler Trading Team
It’s a well-known realization around Simpler Trading — traders are not born.
Traders are those who commit to developing and mastering proven skill sets that allow them to pursue profitable opportunities in the stock market.
Like any other worthwhile endeavor in life, successful trading requires building a solid foundation of skills, backed by a plan.
How do you develop as a trader? Here’s a look at three key steps:
- Identify your style — Dig down to what type of trading fits you. Stocks? Options? Forex? High-risk? Low-risk? A blend? Determine the security (stocks, options, etc.) and define your risk profile, i.e. risk first, profits second. Managing risk is vital to living to trade another day.
- Build Your Foundation — Understanding strategies and setups along with how and when to trade are your foundation. The foundation is supported by tools that effectively support your trading, i.e. scanners, indicators, mentoring.
- Write Your Plan — Your plan places style and foundation into a written document that gives you a reference point in the midst of strong emotions, i.e. big trade win, or big trade fail. A proven plan can guide focus, discipline, and strategy.
Every expert had to start, develop — fail and succeed along the way — and then reach a higher skill level.
Reaching the next level in your trading journey can get a boost by using the knowledge of those who have “been there and done that.” Why trade alone?
We Saw: markets pushing higher on positive news —
- Coronavirus treatments on fast track
- More state economies working to reopen
- Oil jumps thanks to five-day win streak
We’re Watching: … if market rally is built on weak legs —
- Stocks making their own way, presenting opportunity
- Midweek movers gaining momentum
- Speed of “normal” as businesses reopen
Want a shortcut to master a certain strategy? Discover more HERE.